Poole made the following purchases of Smarte Company common stock:

Date Shares Cost

1/1/13 70,000 (70%) $1,000,000

1/1/14 10,000 (10%) 160,000

Stockholders equity information for Smarte Company for 2013 and 2014 follows:

2013 2014

Common stock, $10 par value $1,000,000 $1,000,000

1/1 Retained earnings 300,000 380,000

Net income 110,000 140,000

Dividends declared, 12/15 (30,000) (40,000)

Retained earnings, 12/31 380,000 480,000

Total stockholders equity, 12/31 $1,380,000 $1,480,000

On July 1, 2014, Poole sold 14,000 shares of Smarte Company common stock on the open market for $22 per share. The shares sold were purchased on January 1, 2013. Smarte notified Poole that its net income for the first six months was $70,000. Any difference between cost and book value relates to subsidiary land. Poole uses the cost method to account for its investment in Smarte Company.

Required:

A. Prepare the journal entry made by Poole to record the sale of the 14,000 shares on July 1, 2014.

B. Prepare the workpaper eliminating entries needed for a consolidated statements workpaper on December 31, 2014.

C. Compute the amount of noncontrolling interest that would be reported on the consolidated balance sheet on December 31, 2014.